US fines Southwest $140m for holiday meltdown
The Transportation Department on Monday announced a $140m fine against Southwest Airlines over a meltdown last winter that disrupted travel for about 2m people during the holiday season. Of the $140m, Southwest Airlines will pay $35m to the federal government. For the remaining amount, the department is giving the airline credit for providing frequent-flier points as an apology to customers affected by the problems and for agreeing to give out tens of millions of dollars in vouchers to those affected by future delays and cancellations. The fine is roughly 30 times what had previously been the department’s largest penalty against an airline for consumer protection violations, a $4.5m settlement with Air Canada in 2021 over customer refunds. “Today’s action sets a new precedent and sends a clear message: If airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” Transportation Secretary Pete Buttigieg said in a statement. “Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again.” The department said that Southwest had run afoul of federal law by failing to provide prompt customer service, flight notifications and refunds to passengers. In an order laying out the fine, the agency said that Southwest disagreed with the government’s conclusion that it had violated the law but agreed to the penalty to avoid litigation. The airline struck a more conciliatory tone in a statement, saying that it was “grateful to have reached a consumer-friendly settlement.” Bob Jordan, the CE, said the company had worked since last winter to improve its service. “We have spent the past year acutely focused on efforts to enhance the customer experience with significant investments and initiatives that accelerate operational resiliency, enhance cross-team collaboration and bolster overall preparedness for winter operations,” Mr. Jordan said. As part of the announcement on Monday, the Transportation Department said it would require Southwest to hand out at least $90m in vouchers to customers who experience severe disruptions caused by the airline in the future. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-12-19/unaligned/us-fines-southwest-140m-for-holiday-meltdown
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US fines Southwest $140m for holiday meltdown
The Transportation Department on Monday announced a $140m fine against Southwest Airlines over a meltdown last winter that disrupted travel for about 2m people during the holiday season. Of the $140m, Southwest Airlines will pay $35m to the federal government. For the remaining amount, the department is giving the airline credit for providing frequent-flier points as an apology to customers affected by the problems and for agreeing to give out tens of millions of dollars in vouchers to those affected by future delays and cancellations. The fine is roughly 30 times what had previously been the department’s largest penalty against an airline for consumer protection violations, a $4.5m settlement with Air Canada in 2021 over customer refunds. “Today’s action sets a new precedent and sends a clear message: If airlines fail their passengers, we will use the full extent of our authority to hold them accountable,” Transportation Secretary Pete Buttigieg said in a statement. “Taking care of passengers is not just the right thing to do — it’s required, and this penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again.” The department said that Southwest had run afoul of federal law by failing to provide prompt customer service, flight notifications and refunds to passengers. In an order laying out the fine, the agency said that Southwest disagreed with the government’s conclusion that it had violated the law but agreed to the penalty to avoid litigation. The airline struck a more conciliatory tone in a statement, saying that it was “grateful to have reached a consumer-friendly settlement.” Bob Jordan, the CE, said the company had worked since last winter to improve its service. “We have spent the past year acutely focused on efforts to enhance the customer experience with significant investments and initiatives that accelerate operational resiliency, enhance cross-team collaboration and bolster overall preparedness for winter operations,” Mr. Jordan said. As part of the announcement on Monday, the Transportation Department said it would require Southwest to hand out at least $90m in vouchers to customers who experience severe disruptions caused by the airline in the future. <br/>
